Charlie's Holdings Reports 115.9% Revenue Growth but Net Loss in Latest Quarter

Charlie's Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company achieved a revenue of approximately $3.8 million for the three months ended June 30, 2026, marking a 115.9% increase from $1.8 million in the same period last year. For the six months, revenue rose to $8.6 million, a 157.7% increase compared to $3.3 million in the prior year. Despite this growth, the company reported a net loss of $1.7 million for the quarter and $2.7 million for the six months, a stark contrast to the net income of $4.9 million and $3.7 million reported in the same periods of 2025.

The increase in revenue was primarily driven by higher sales of nicotine-based and alternative nicotine products, particularly the SBX disposable vapor products, which are not subject to FDA review. However, the cost of goods sold also rose significantly, leading to a gross profit of $1.1 million for the quarter, up from $486,000 a year earlier. Operating expenses increased as well, with general and administrative costs rising to $1.9 million, reflecting higher wages, professional fees, and other operational costs associated with the company's new manufacturing facility in Huntington Beach.

In terms of strategic developments, Charlie's Holdings has focused on expanding its product offerings and enhancing its market position. The company launched new disposable vape products under the SBX brand and is actively pursuing regulatory approvals for its nicotine product portfolio. Additionally, the company has entered into a licensing agreement with IKE Tech LLC to develop an AI-powered age-gating system for its products, which could provide a competitive advantage in the regulatory landscape.

Operationally, the company reported a working capital increase to $4.7 million as of June 30, 2026, compared to $3.1 million at the end of 2025. The total assets rose to $12.8 million, while total liabilities increased to $9.7 million. The company’s employee headcount has also grown to support its operational needs, although specific figures were not disclosed. Looking ahead, management remains optimistic about the company's ability to navigate regulatory challenges and capitalize on growth opportunities, particularly in the non-combustible and alternative alkaloid product segments.